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Gold Smuggling in Thailand

BANGKOK, Thailand, March 27 — The president of the Thai Bankers Association blanies gold smugglers and Thai tour­ists for a run on the American dollar that has increased its black market value by about 6 cents hereto nearly 22 baht.

Banjerd Cholvicharn told a news conference yesterday that traders were buying smuggled goId with dollars bought in the black market. He said gold was

The winner of the earlier ten­der call declined to sign the Government contract at the last minute for undisclosed reasons. Mr. Banjerd said an increasing number of Thais traveling aboard turn to the black mar­ket for extra dollars to spend.

Commercial banks, on presen­tation of a traveler's passport, fix the amount they estimate will meet basic traveling and entertainment costs. The amount is fairly generous but hardly enough top, earn a Thai tourist a big‐spener reputation abroad.

On Thursday, banks were buying United States dollars for 20.622 baht—the Thai mon­etary unit—and selling dollars for 20.85 baht.

On Monday the black market rate of 21.70 baht was reported close to 22 baht on Thursday.

Study Under Way

Bank of Thailand directors, however, are studying the cur­rency fluctuations. One bank official believes that specu­lators are behind the run on the American dollar. He said they used forged passports, or out­dated passportsinade valid by forgery, to obtain dolIars from banks, ostensibly for traveling.

He said such passports were used many times at various banks for dollars that find their way onto the black market, Police at the request of the Bankof Thailand are investi­gating the use of forged passports to obtain foreign cur­rency.

Prime Minister Thanom Kit­tikachorn said yesterday he would initiate an investigation into the fluctuating values of foreign currency, although he had not yet received a report on the matter.

Hoarding Also Seen

Bangkok. financial circles say it is possible dollars are being hoarded as wetI, since there should be a considerable amount of dollars on the free market from the current tourist season.

Earlier this week a Bank of Thailand official also blamed gold smugglers and tourists for the black market dollar‐rate in­crease. He said it might be caused as well by the surrep­titious transfer of large sums of money to foreign currencies.

He said Thailand's export­import trade was not menaced. beGause the Bank of Thailand had, a sufficient reserve of for­eign currency.